SBA Uses Cloud For Loan Cancellation Platform – FCW
SBA Uses Cloud For Loan Cancellation Platform
The Small Business Administration (SBA) has implemented a commercial software-as-a-service platform to handle lender requests for processing paycheck protection program loan cancellation, but lawmakers are ‘worried about technical problems.
The SBA / Treasury Department PPP program has promised to cancel emergency loans to companies that have retained their employees as the COVID-19 crisis progressed. The PPP program, according to the SBA, has distributed more than $ 525 billion, approving more than five million loans through lenders. It began accepting lenders’ rebate requests on August 10.
The SBA has contracted for a turnkey commercial SaaS package to handle loan cancellation requests under the PPP, said William Manger, the SBA’s administrative chief of staff, during a hearing of the sub- House Small Business Innovation and Workforce Development committee on September 24.
The system that handles PPP loan cancellation requests from lenders, he told Rep. Chrissy Houlahan (D-Pa.) At the hearing, is not the E-Trans system of the agency, but a specialized business platform already used by commercial lenders.
According to contract documents, the SBA signed a $ 92 million contract in June with the Reston, Va.-Based mentor / small business partnership Goldschmitt and Associates, Inc. and Central Research, Inc.
The SaaS platform, according to the documents, is based on Amazon Web Services and handles rebate requests and associated loan documentation. It must support up to five million applications and associated documentation, depending on contract documents, and host up to 25,000 concurrent users.
Despite the huge capacity, Houlahan said she had heard from banking industry lenders that they were having trouble with pardon requests on the SBA system.
Lenders, she said, “are struggling right now because they’re trying to get things through the forgiveness pipeline, but get a lot of error messages saying a lot of the data is wrong, that ‘they end up with a very, very small percent of what they submit being accepted the first time around. “
In response, Manger told Houlahan that the SBA had worked closely with the entrepreneurs to change the forgiveness program’s platform. He said that since it is a cloud platform, capacity is not an issue.
Manger said the issues looked like data entry issues and told Houlahan he would consult with the contractor on the matter.
Mark Rockwell is a senior editor at FCW, whose Pace focuses on Acquisition, the Department of Homeland Security and the Department of Energy.
Prior to joining FCW, Rockwell was Washington correspondent for Government Security News, where he covered all aspects of homeland security, from IT to detection dogs and border security. Over the past 25 years in Washington as a reporter, editor and correspondent, he has covered an increasingly wide range of high-tech issues for publications such as Communications Week, Internet Week, Fiber Optics News, the tele.com magazine and Wireless Week.
Rockwell received a Jesse H. Neal Award for his work on telecommunications issues and is a graduate of James Madison University.